Deutsche Bank reported on Wednesday that it has cut its rating on Alcoa Inc (AA
) to “Sell.”
The firm has downgraded AA from “Hold” to “Sell,” and has lowered its price target from $9 to $5.50. This price target suggests a 32% decline from the stock’s current price of $8.17.
Analyst Jorge Beristain commented: “Our downgrade is primarily driven by DB’s lower medium-term aluminum price outlook (12-13% lower in 2014-15 to $0.82 and $0.88/lb, respectively), which cuts 2014E and 2015E EPS by over half.”
Looking ahead, the firm has lowered its FY2013 EPS estimate from 46 cents to 27 cents per share. Revenue estimates have been lowered from $23.3677 billion to $22.903 billion.
Alcoa shares were down 25 cents, or 3.06%, during pre-market trading Wednesday. The stock has declined 5% YTD.
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